Uber Loses $1 Billion Due To High Delivery & Freight Costs

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Bengaluru: Uber Technologies Inc reported a $1 billion loss on Thursday as the company spent heavily to build up its food delivery and freight businesses, sending revenues up 20% in its first quarterly report as a public company.

The delivery and freight costs went up 35% in the quarter, as the company spent heavily in the run-up to its IPO earlier this month. Gross bookings, a measure of the total value of rides before driver costs and other expenses, rose 34% from a year ago to $14.6 billion.

Meanwhile, Bookings were up 3.4% from the previous quarter, showing the difficulty of recruiting new riders in saturated markets.

Revenue of $3.1 billion matched the high end of the range Uber forecast for the quarter and the loss of $1.0 billion compared with the company’s forecast of $1.0 billion to $1.11 billion.

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